DigitalCFO Newsroom | 15 October 2021
Sustainability Platform Connecting Corporates of all sizes with Accessible Carbon Tracking Solutions and Green Financial Services
Photo from CO2X
- Sustainability Platform Connecting Corporates of all sizes with Accessible Carbon Tracking Solutions and Green Financial Services
- Founded by Three Homegrown Technology Companies Specialising in Internet of Things (IoT), Data Analytics and Blockchain
- Memorandum of Understanding (MoUs) Signed with Key Representatives from the Transport and Logistics Industry Corporates and Financial Institutions to Kickstart the Beta Phase
CO2X Pte Ltd (“CO2X”) signed a Memorandum of Understanding (MoU) with key industry and association leaders from the Transport and Logistics, and Finance sectors. Witnessed by Law Chung Ming (Executive Director for Transport and Logistics, Enterprise Singapore (ESG), and Kwok Quek Sin (Executive Director (Green FinTech), FinTech and Innovation Group, Monetary Authority of Singapore (MAS), the MoU signals the commitment to jointly develop a platform that will provide local small and medium enterprises (SMEs) with accessible carbon tracking solutions and green financial services through a data-driven approach.
CO2X is a company founded by 3 homegrown technology companies, Ascent Solutions Pte Ltd (“Ascent”) and Evercomm Singapore Pte Ltd (“Evercomm”) under Enterprise Singapore Scale-up programme, and multi-award-winning FinTech firm, Hashstacs Pte Ltd (“STACS”), known for their innovative solutions. CO2X was set up to achieve the sustainability aspirations of the Founders through their respective expertise in emerging technologies such as the Internet of Things (IoT), Data Analytics and Blockchain. The CO2X platform leverages these technologies to help businesses and the financial sector navigate the complex regulatory and costly certification frameworks that hinder the adoption and financing of sustainability practices, especially for SMEs.
Leveraging on the CO2X platform, companies are able to track their carbon footprint to achieve benchmarking and devise data-driven emission reduction strategies that in turn help reduce the fuel and energy costs of doing business. They can also use the data and reports offered by CO2X to undergo green certification against international standards. CO2X also goes one step further to attract green financial services like sustainability-linked loans and insurance products through the issuance of certified carbon avoidance certificates captured on the blockchain. Financial service providers like OCBC, UOB and Aviva Singlife have also joined the MoU signing with CO2X to explore this further.
CO2X will begin testing its beta platform in November 2021 with key industry partners including Bok Seng, Chuan Lim Construction, CWT, EVFY, FoodXervices, Tiong Seng, and Contractors. CO2X has strategically chosen to focus on the Transport and Logistics sector as it contributes to 14.8% of Singapore’s carbon emissions1, making it the third largest polluting sector in the nation. While initially focusing on the Transport and Logistics sector, CO2X aims to expand its offering in the future to other sectors such as construction, manufacturing, hospitality and facilities management given the adaptability of the platform.
Mr Lim Chee Kean, Chairman and Co-founder of CO2X, and the CEO of Ascent, commented: “Sustainability is an increasingly important and necessary strategy for all companies, across all industries, to stay competitive today. Companies need to expand their business success metrics beyond the bottom line and recognise the long-term value sustainability creates. The CO2X platform is the best starting point for companies keen to embark on their sustainability journey. Our inclusive platform will lower the barriers for SMEs to incorporate sustainability practices and bridge the gap between businesses and financial services in a data-driven approach.”
Mr Peter Ho, President of CDAS, and the CEO of Wing Seng Logistics Pte Ltd, commented: “CDAS is proud to be supporting Singapore’s Green Plan roadmap to reduce carbon emissions in the industry, and will support efforts to reduce its carbon footprint through automation, digitalisation, smart technology, as well as exploration of alternative fuels. Just as we have done so before, through our various industry digitalization and automation solutions, we can work together as an industry, and as one united nation, towards a brighter, greener, and cleaner future for our children.
Mr Oh Bee Lock, CEO of Singapore Logistics Association (SLA), commented: “As the global economy emerges from battling the Covid-19 pandemic, governments and businesses are shifting gears to be more environmentally responsible. This transition to decarbonisation will also reconfigure the way global supply chains are organised and executed. Logistics service providers therefore have to stay up-to-date on climate policies and develop capabilities to comply with new sustainability measurements and emission reduction. As such, the Singapore Logistics Association has started a series of events to help our members keep abreast of sustainability trends, best practices and policies, with the aim of capturing business opportunities with greener logistics solutions and new innovations. One such example is the CO2X platform, that demonstrates how digital technologies will be able to help track and manage carbon emissions in the very near future.”
Ms Cherie Goh, Chairwoman of Singapore Transport Association and CEO of West Street Carrier, commented: “Rapid global industrial and economic developments is making lives of humans easy & comfortable but also exacerbating climate and public health. Humanity is on the verge of facing extreme health and quality of life crisis. STA recognises the importance of these developments but is determined to adopt sustainable development strategies to address the risk of this global crisis through an introduction of events, courses, sustainable best practices, policies and technology to encourage businesses towards building a sustainable future.”
Mr Ricky Loo, CEO of CWT Integrated, shared: “Sustainable development strategies are a priority for many companies. At CWT, we embed ESG and technology in the company to optimise operating and cost efficiency, reduce carbon footprint and create a great workplace culture while ensuring effective corporate governance. By taking responsibility for changing the way we operate, we benefit the environment, help customers succeed and communities thrive.”
Ms Pearlyn Phau, Group CEO, Aviva Singlife, shared: “Sustainability is one of the core pillars of our business strategy. Aviva Singlife is pleased to be the first insurer to work with CO2X to utilize their Blockchain technology to underwrite and find green insurance solutions for the Transport and Logistics sector. Customers can leverage the platform to track their carbon footprint for benchmarking, devise fuel reduction strategies, reduce fuel costs and reduce emissions. By analysing the data collected, Aviva Singlife will be able to better assess and provide reduced insurance premiums for logistics operators. This is a win-win solution that will support sustainability in business.”
Mr Linus Goh, Head of Global Commercial Banking, OCBC, shared: “The case for going green today is becoming clearer for businesses across all industries and regions, but for real change to take place, SMEs need to have practical ways to measure and monitor their carbon footprint. We at OCBC are happy to partner with CO2X as it sets out to address this gap across a broad range of industries. We believe technology solutions like this will combine well with our green and sustainability-linked loans to help our SME customers across the region to successfully transition their businesses and projects.
Mr Bonar Silalahi, Head of Consumer Goods and Industrials, Sector Solutions Group, UOB, shared: “UOB’s approach to sustainability is to simplify the adoption of sustainability practices for business. The tools and tracking systems that CO2X offers can help fleet operators reduce their carbon emissions. This collaboration enhances UOB’s capabilities and provides our customers with an integrated end-to-end approach as they embark on their sustainability journey and grow responsibly while reaping the long-term benefits of going green. To support our customers’ switch to electric vehicles, UOB recently launched U-Drive, a comprehensive electric vehicle financing solution for fleet operators. Through our sustainable financing initiatives and solutions, we hope to quicken the transition to a lower carbon economy and are committed to supporting Singapore’s 2030 vision.”
CO2X automates the entire process through cutting edge IoT, blockchain and data analytics technologies. It will be an inclusive one-stop platform backed by industry standards, making it simple and accessible to all companies, regardless of size. CO2X will help companies in three key areas:
Data quantified through IoT and analysed through data analytics, will be converted into carbon emission data. Based on the data, CO2X will provide suggestions for fuel/carbon emission reduction.
Reports generated will undergo green accreditation according to different sustainability standards. CO2X will issue its own Carbon Avoidance Certificate (CAC) that is recorded on an immutable blockchain.
Boosted investor confidence due to trustable and accurate impact reports and carbon emission computations will enable corporates, especially small and medium enterprises, to attain better sustainable finance (e.g. better loan rates, more attractive insurance premiums, etc.).